Crypto Firms To Obtain Nigeria’s Regulatory Nod Amid Widespread Uncertainty

Crypto firms are set to licenses from the Nigerian Securities and Exchange Commission (SEC) this month. The first set of licenses is expected to be issued to firms around digital services and tokenization. The country’s regulatory landscape is marred with rule uncertainty following an unending back and forth with crypto firms. 

Nigeria Set To Issue Crypto Firms Licences

The country known for its tough stance on several crypto firms might be making a new turn regarding wider market regulations. According to Bloomberg, the county’s financial regulator plans to give licenses to crypto companies following wider market adoption. Emomotimi Agama, the DG of the Abuja-based Commission cited the growth of fintech among young people. 

“Being a crypto enthusiast and fintech enthusiast, I can tell you without doubt that this is going to happen sooner than you think. We must support the youths of this country to be able to achieve the benefits that are accruable in fintech. The market size is huge and it is growing.”

Pointing to the increased growth in crypto adoption, he noted that the government wants to provide platforms where related functions can be carried out without impacting Nigeria’s economy and currency. While crypto exchanges and platforms continue to face hurdles in many jurisdictions, others have moved towards the sector to drive growth and onboard faster cross-border payments. The country also plans a law to tax digital assets among others further deepening the uncertainty in the space.

Nigeria’s Regulatory Debacle

The country is popular for its widespread crypto adoption but government policies continue to stand against the desired growth. Industry reports place the country’s crypto use among global leaders with many tapping the sector for cross-border transactions, remittance, and a haven against inflation.

However, government policies remain hostile to crypto firms. This year, the office of the National Security Adviser (NSA) detained two Binance executives with other agencies slamming charges on the crypto exchange. The country recently seized $37 million worth of crypto assets allegedly used to sponsor the recent protest.